Frequently Asked Questions About Small Business Private Equity

Is Hadley Capital the buyer or another intermediary?
Hadley Capital is a principal investor, not an intermediary. We buy companies using our own capital.

Does Hadley Capital really have money to invest?
Yes. Hadley Capital has more than $40 million of committed equity capital. We can fund transactions on short notice if required but we usually make our investment decisions in an orderly fashion.

Is Hadley Capital a lender?
No. Hadley Capital is an equity investor, not a lender. However, we often use debt to finance acquisitions. In such cases, Hadley Capital will arrange for debt financing that is non-recourse to all owners (no one will personally guarantee the debt). One of Hadley Capital’s areas of expertise is determining and arranging appropriate capital structures.

Who are the decision makers at Hadley Capital?
Hadley Capital’s three partners make all of the investment decisions for the partnership. We write the checks. When speaking to one of Hadley Capital’s partners you are speaking directly to a decision maker.

Does Hadley Capital make minority investments?
Hadley Capital is a control investor. This does not mean that we want to control the day-to-day operations of the company. Instead, we expect the management team (many of whom are also shareholders) to run each business. Hadley Capital’s role is to provide strategic direction, manage the lending relationships, investigate add-on acquisition opportunities, etc. Hadley Capital has occasionally been a minority investor but in these instances we have still held a certain level of legal control.

How long does Hadley Capital hold its investments?
Hadley Capital is a long-term investor. We do not ‘flip’ investments or seek to generate returns through short-term financial wizardry. Hadley Capital has not sold a business in less than seven years from the time we acquired it.

How long will it take to sell my company?
In general, Hadley Capital closes and funds transactions about 90 days after we enter into a letter of intent. Learn more about the process of selling your company to Hadley Capital.

What changes will Hadley Capital make to my business?
Hadley Capital is not going to run the company – the company’s management team will. Hadley Capital will be there to partner with the management team to determine any changes that need to be made to the business. Learn more about our partnership model.

What is it like to work with Hadley Capital?
Of course, we think it’s great. And the managers of our companies would agree (at least that’s what they tell us…). Most of our companies’ presidents enjoy having Hadley Capital as partner and sounding board. Conversations are as frequent as necessary – sometimes daily and in other instances once a month. The presidents also interact among themselves. We have found this sharing of ideas and best practices to be in everybody’s best interest. Our performance expectations are clear and objectively reasonable.

What are Hadley Capital's ongoing reporting requirements?
All of our companies are audited and prepare detailed monthly financial statements, annual budgets, etc. Some portfolio companies also prepare a weekly, one page, ‘flash’ report. In general our reporting requirements are not burdensome and the data they generate are useful to management.

How does Hadley Capital add value to a company?
Hadley Capital’s role varies depending upon the needs of each company. At times we are the outsourced CFO, the business development team, or a strategic consultant. At all times we are interested and active board members. We believe that our collective experience allows us to offer sound and prudent advice and guidance that, over time, adds value to each company.

You can send us additional questions via our contact page, or email us at inquiries@hadleycapital.com.